Customization: Ideal Varieties, Product Uniqueness and Price Competition
We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in equilibrium.
|Date of creation:||31 Jan 2009|
|Publication status:||published in Economics Bulletin 2009|
|Contact details of provider:|| Postal: 118 Professional Building, Columbia, MO 65211|
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Web page: http://economics.missouri.edu/
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